Does Japan Face a Debt Apocalypse?

If money-printing causes Japanese inflation to spike, look out below—for stocks and bonds. Why some call Abe "asset-bubble economics." What worries Kyle Bass.

It's only April, but the best gains from this year's top trade—buying Japanese stocks to exploit the steep decline in the yen engineered by Tokyo—might already have been made.

Massive quantitative easing by the Bank of Japan has given the financial markets a pleasant jolt, but ultimately could prove dangerous to the country's bond market, on which the government depends to fund its enormous deficit. That could lead to the debt apocalypse long predicted by Kyle Bass, who heads Hayman Advisors, a Dallas investment firm that...